Director Buys 500,000 Shares Bit Digital (BTBT)
Brock J. Pierce, director, disclosed the purchase of 500,000 shares of Bit Digital (NASDAQ:BTBT) at $2 per share, totaling approximately $1 million, as reported in a Form 4 filing dated June 27, 2025. Pierce now directly owns 500,000 shares and indirectly owns 80,000 shares through Percival Services, LLC.
Transaction summary
| Metric | Value | Context |
|---|---|---|
| Transaction size | 500,000 shares (~$1 million) | Open market purchase on June 25, 2025 |
| Post-transaction position | 500,000 shares (~$995,000 market value) | Represents 0.24% ownership as of June 27, 2025 |
| Price vs MA50 | $2 | 11.7% below 50-day moving average ($2.26) |
| Price vs MA200 | $2 | 34.1% below 200-day moving average ($3.04) |
| One-year price change | (40.2%) | Stock declined over the past year as of June 27, 2025 |
Key questions
- How does the transaction size compare to this insider's historical activity?
This purchase of 500,000 shares on June 25, 2025, is substantially above the insider's historical median trade size of 20,000 shares and above the 75th percentile of 260,000 shares, representing a significant increase in transaction magnitude. - At what valuation levels did the insider transact relative to recent trading ranges?
The $2 purchase price is approximately 11.7% below the 50-day moving average and 34.1% below the 200-day moving average, indicating buying activity at the lower end of recent trading ranges. - What is the impact of this transaction on the insider's ownership?
The insider now holds 0.24% of the company’s outstanding shares following the transaction. - How does this activity relate to overall stock performance?
Bit Digital shares have declined 40.2% over the past year as of June 27, 2025, with this purchase occurring during a period of pronounced underperformance.
Company overview
| Company Data | Market Data |
|---|---|
| Revenue (2024): $163.76 million | Market capitalization: $418.10 million |
| Net income (2024): $28.31 million | Current price: $2.00 |
| Employees: 54 | Dividend yield: 0% |
| 50-day moving average: $2.26 | One-year price change: (40.2%) |
Company snapshot
- Bit Digital generates revenue primarily from bitcoin mining operations and related treasury management activities.
- Together with its subsidiaries, the company engages in the bitcoin mining business.
Bit Digital is a digital asset mining business focused on Bitcoin, operating at scale with $163.76 million in 2024 revenue. It is engaged in Bitcoin mining and Treasury management activities.
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Foolish take
While we as investors should never transact in a stock purely based on an insider's actions, this one is notable. Pierce is essentially placing a $1 million bet on the future of Bit Digital, and by extension, the future trajectory of Bitcoin (CRYPTO:BTC).
As with many crypto miners/stakers, people who are bullish on Bitcoin and Ethereum (CRYPTO:ETH) -- Bit Digital's other favored crypto -- should take this as a strong vote of confidence and consider buying the stock. Its fortunes are, after all, tied to the success of those assets.
Regarding that, as long as cryptocurrencies generally are a viable asset class, Bitcoin and Ethereum, as the top two, should generally appreciate. A word of caution here, though -- digital currencies (and the stocks of companies that mine/stake them) are quite volatile relative to more traditional investments like stocks or bonds. So they are recommended only for investors with an above-average tolerance for risk.
Glossary
- Form 4: A regulatory filing disclosing insider trades of company stock by officers, directors, or major shareholders.
- Insider: An individual with access to non-public, material information about a company, often an executive or director.
- Insider Trading: Buying or selling a company's securities by someone with material, non-public information about the company.
- Ownership Percentage: The proportion of a company's total outstanding shares held by an individual or entity.
- Moving Average (MA): A stock's average price over a specific period, used to identify trends and price levels.
- TTM (Trailing 12 Months): Financial data covering the most recent 12 consecutive months, used to assess performance.
- Median Trade Size: The middle value of all trade sizes made by an insider, providing a typical transaction benchmark.
- 75th Percentile: A statistical measure indicating that 75% of observed values fall below this number.
- Treasury Management: The process of managing a company's cash, investments, and other financial assets.
- Dividend Yield: A financial ratio showing how much a company pays in dividends relative to its stock price.
- Market Value: The current worth of an asset or holding, calculated by multiplying the price by the quantity owned.
- Bitcoin Mining: The process of validating Bitcoin transactions and earning new Bitcoins by solving complex computational problems.
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Eric Volkman has positions in Bitcoin and Ethereum. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.
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